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ISLAMABAD, Feb 27 (APP):A delegation of the Mutual Funds Association of Pakistan (MUFAP) on Thursday met with Minister for Finance and Revenue Senator Muhammad Aurangzeb and discussed mutual fund industry growth.
The meeting was attended by the Chairman of the Securities and Exchange Commission of Pakistan (SECP) and senior officials from the Finance and Revenue Divisions. The MUFAP delegation was led by Aftab Diwan, Independent Director of MUFAP, said a news release.
During the meeting, the delegation presented a comprehensive overview of Pakistan’s mutual fund industry and its role in promoting savings, investments, and capital market development.
They highlighted that mutual funds play a critical role in channeling savings into productive investments, supporting economic growth, and expanding financial inclusion.
The delegation also pointed out that Pakistan’s gross savings rate, currently at 13% of GDP, remains significantly lower than regional peers such as India, which stands at 30%.
The discussion covered key policy proposals to strengthen the financial sector. The delegation emphasized the need to develop Infrastructure Funds, allowing private sector participation in essential infrastructure projects.
They also advocated for Contributory Pension Scheme Reforms, highlighting the importance of expanding structured retirement savings at the federal level.
Additionally, they proposed policy measures to enhance market liquidity for Government Ijarah Sukuks (GIS) by improving institutional participation and introducing open market operations.
To encourage retail investor participation, MUFAP recommended reinstating tax credits for mutual fund investments to provide incentives for long-term savings.
They also proposed the establishment of a Pakistan Higher Education Savings Fund, modeled after successful global education savings plans, to help families plan for their children’s education.
Finance Minister Senator Muhammad Aurangzeb appreciated MUFAP’s insights and reaffirmed the government’s commitment to strengthening Pakistan’s investment landscape. He directed SECP and relevant authorities to evaluate the proposed reforms and ensure the development of a more robust and inclusive financial ecosystem.
The meeting concluded with a shared understanding that a well-regulated and growing mutual fund industry would not only contribute to economic stability but also offer secure and profitable investment opportunities for the public, promoting financial security and sustainable development.